Mr. smith has contributed $225.00 at the end of each month into an RRSP paying 4% per annum compounded quarterly. using the formula below please solve for the following.

(a) After 18 years Mr. Smith will have $____ in the RRSP. (rounded to two decimal places)

(b) How much of the amount is interest? $____

2. Find the future value of the following ordinary annuity

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$550	1 year	3 Years	11%	Semi-annually

The future value is $____ (rounded to two decimal places)

Calculate the future value of the ordinary annuity (FVA) as follows:

FVA = PMT * (((1 + r)^n - 1) / r)

Where Periodic payment is (PMT)

Where Number of periods is (n)

Where Annual interest rate is (r)

3. What is the discounted value of $1321.00 paid at the end of every year for 4 years if interest is 10% per annum compounded semi-annually? Please solve using the formula below.

The discounted value is $____

4. A property was purchased for $4866.00 down and payments of $1170 at the end of every three months for 7 years. Interest is 3% per annum compounded annually.

(a) What was the purchase price of the property ? ( rounded to two decimal places )

(b) How much is the cost of financing ?

5. Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $811.52 at the end of every year over five years. If interest is 6.2% compounded quarterly, what was the original loan balance? Please use the formula below to solve, or using a financial calculator.

i = the given nominal annual rate 12

n = the number of years x 4

6. As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $11,748 now, or accept monthly payments of $188 for the next six years. If the money is placed into a trust fund earning 4.48% compounded annually, which is the better option and by how much?

Answer : The _________ option is better by $___

7. Find the present value of the following ordinary annuity Using the formula below.

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$2500	1 Year	9 Years	9%	semi-annually

The present value is $___ (rounded to two decimal places )

8.Harlan made equal payments at the end of each month into his RRSP. If interest in his account is 8.8% compounded annually, and the balance after eleven years is $13,500, what is the size of the monthly payment?

The size of the monthly payment is $____

9. A vacation property valued at $28,000 was bought for 240 payments of $220 due at the end of every month. What nominal annual rate of interest compounded semi-annually was charged? Answer Using a preprogrammed financial calculator to solve for the rate. Remember to follow the cash flow sign convention.

The nominal annual rate of interest is ___%

10. A loan is repaid with payments of $1246 made at the end of each quarter for 13 years. If interest on the loan is 5.5%, compounded monthly, what is the initial value of the loan? Enter to the nearest cent (two decimals). Using the formula shown below.

i = the given nominal annual rate 12

n = the number of years x 4

11.What payment needs to be made at the end of each year to accumulate $27082 over 24 years at 9.5% compounded monthly? Answer to two decimals.

Please Answer using a Financial Calculator

Settings :

N = # of years x 1

I% = the given interest rate (eg. 10.5% is entered as 10.5)

PV = 0

PMT = ?

FV = given future value, entered as a negative

P/Y = 1

C/Y = 12

12.What payment needs to be made at the end of each month to accumulate $30502 over 20 years at 14.9% compounded quarterly? Answer to two decimals.

13.What payment needs to be made at the end of each year to pay off a loan of $66116 over 21 years at 14.6% compounded monthly? Answer to two decimals. Do not use $ signs or commas.

Financial Calculator Settings as shown :

N = # of years x 12

I% = the given interest rate

PV = the loan value

PMT = calculate

FV = 0

P/Y = 1

C/Y = 12

14.What payment needs to be made semi-annually at the end of each period to pay off a loan of $465733 over 25 years at 9.3% compounded monthly? Answer to two decimals.

15.9 deposits increasing at a constant rate of 6.2% are made at the end of each year. The first deposit was 2187 and fund earns 12.4% compounded annually. What is the future value of the periodic constant growth payments? Answer to two decimals using the following formula

Where k = the constant growth rate

n = the number of deposits

PMT = the size of the first deposit

i = the given interest rate

16.6 deposits increasing at a constant rate of 3.4% are made at the end of each year. The first deposit was 12888 and fund earns 14.1% compounded annually. What is the size of the last deposit? Answer to two decimals using the following formula

Formula

((1+)¹

Where:

k is the growth rate

n is the number of years

the Interest rate is irrelevent for this question